Ecommerce In India: Key Challenges To Expect In 2023

Selling a brand on multiple platforms is challenging. If not done right, it can quickly tarnish a brand’s image and lead to losses. Although omnichannel will be the key theme for ecommerce startups in 2023, efforts must be taken to identify the data quality metrics for monitoring and evaluating all distribution channels.

Shoppers today have many options to choose from, and social media allows them to review products and discuss brands without much restraint. In reality, brands will no longer find perfect customers who are perpetually satisfied with their products and services. As onboarding new users will become more costly and challenging, we expect retailers to focus more on retaining customers and creating a smooth experience for them across shopping channels.

In 2022, the Indian startup ecosystem saw more than 20K layoffs due to geopolitical uncertainties, a slowing economy and a harsh funding winter. However, the ecommerce sector did not see too many pink slips apart from Amazon laying off 1K of its India staff. But 2023 has been touted as the year of recession, and most ecommerce companies are struggling on the revenue front. This may impact their expenditure and workforce commitments in the future.

Frauds across orders and returns is common in ecommerce. However, in the last two years, the volume of ecommerce orders have gone considerably high (37% in 2022). This has made ecommerce startups to focus more on strengthening the transparency across the supply chain and invest more in technology to avoid mishaps.

SOURCE: INC42